ACTIVITY in the construction sector contracted for an 18th consecutive month in August as engineering and commercial construction remained weak, a survey says.
The Housing Industry Association performance of construction index (PCI) was at 40.5 index points in August, below the key 50 level that separates expansion from contraction.
The PCI rose 2 index points from the previous month, indicating the pace of contraction slowed slightly in August.
The August survey reflects tight credit conditions and difficulties securing new project work, particularly within the engineering construction sector.
Job shedding among construction firms continued in August, but at a slower pace, the report said.
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